LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7148 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1248 BILL AMENDED:
SUBJECT: Child Care and Development Fund.
FIRST AUTHOR: Rep. Rowray BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides that a household that includes a foster parent at the time of the
Office of Secretary of Family and Social Services' initial determination is eligible for assistance under the
Child Care and Development Fund (CCDF) program.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The number of children eligible for CCDF vouchers will increase by
including other children in the home of a foster parent. Presently, a foster child is eligible for the CCDF
program and other children in the foster home qualify if the family meets the income eligibility criteria. The
is estimated between $20.4 M and $42 M per year, assuming every foster parent has other children in the
house. Additional vouchers may be funded through reduced award amounts or additional funding support.
Additional Information - The following information was used to develop the cost estimate:
• As of September 2024, the total average cost of care, inclusive of parent copayments and overage
costs, was $906 per month. The state pays 85.2% of this cost.
• There were 2,245 unique direct support of foster care assistance vendors receiving between $780 and
$9,000 per payment, and receiving more than one payment during CY 2023.
• The estimate is based on one or two additional children per foster care parent qualifying for CCDF
vouchers. The actual number could be less to the extent that some foster parents do not have other
children in the home or that the family already meets the income eligibility for CCDF.
In grant year 2024, Indiana received $260.7 M in federal CCDF funding and contributed $101 M in state
funding for a total of $361.7 M. The federal funds are allocated to the states by several formulas based on
a historic federal program's spending and demographic and economic characteristics of the state. The states
are required to provide matching and maintenance of effort funds, and have discretion to transfer funds from
the Temporary Assistance to Needy Families block grant (TANF). The following table provides the source
HB 1248 1 of funding:
CCDF Funding Allocations Grant Year 2024
Federal Mandatory Funds $26 M
Federal Matching Funds $47 M
Federal Discretionary Funds $188 M
State Maintenance of Effort $24 M
State Matching Funds $15 M
TANF Block Grant Transfer $62 M
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Office of the Secretary of Family and Social Services
Local Agencies Affected:
Information Sources: Courtney Penn, FSSA; LSA view of state expenditures by vendor;
https://www.in.gov/fssa/carefinder/files/CCDFOverview.pdf, September 2024.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1248 2